Hurricane Katrina could result in up to a 1 percentage point reduction in US economic growth and cost up to 400,000 jobs, the Congressional Budget Office said in an analysis released today.
"Katrina could dampen real gross domestic product (GDP) growth in the second half of the year by one-half to 1 percentage point and reduce employment through the end of this year by about 400,000," CBO said in the analysis.
While acknowledging estimates of the impact are "fraught with uncertainty," CBO said "evidence to date suggests that overall economic effects will be significant but not overwhelming."
